Demand Continues to Weaken, Prices for High-Purity Quartz Sand Fall [SMM Analysis]

As of now, the current SMM domestic market prices for high-purity quartz sand (for the inner layer of quartz crucibles) are 100,000-140,000 yuan/mt, with an average price of 120,000 yuan/mt, showing a downward trend; high-purity quartz sand (for the middle layer of quartz crucibles) is priced at 60,000-90,000 yuan/mt, with an average price of 75,000 yuan/mt, also showing a downward trend; high-purity quartz sand (for the outer layer of quartz crucibles) is priced at 24,000-50,000 yuan/mt, with an average price of 37,000 yuan/mt, with prices remaining stable.

Recently, except for the outer layer sand, the prices of domestic high-purity quartz sand have fallen again. The overall market transactions for inner and middle layer high-purity quartz sand have been relatively weak, leading to significant price drops, with companies mainly offering discounts to secure orders. Since mid-May, the domestic high-purity quartz sand market has cooled, primarily due to the reduced demand and falling prices. In recent months, the operating rate of silicon wafer production has continued to decline, while crucible companies have maintained relatively high operating rates, causing crucible prices to start falling. Currently, the price of 36-inch photovoltaic quartz crucibles in the domestic market has dropped to a mainstream transaction price of 16,000 yuan per unit, even reaching below the cost line, further reducing the willingness to purchase raw quartz sand. Additionally, the recent price drop of middle layer sand from India, which has a significant advantage over domestic sand, has led to increased competition and a subsequent decline in domestic quartz sand prices.

Regarding future price predictions, SMM believes that the transaction focus for quartz sand will temporarily remain stable, but high prices are still expected to see a downward adjustment. Currently, with the continuous weakening of crucible demand, the quartz sand market transactions are trending weaker, and the downward channel is evident. Although the previous downward adjustment was significant, crucible companies are still primarily purchasing based on just-in-time needs, leading to sluggish transactions and a strong willingness to lower quartz sand prices. However, in the short term, companies are highly resistant to further price cuts. Therefore, the short-term transaction focus will remain stable, but there is an expectation for the price gap between high and low prices to narrow.